In order to achieve better environmental responsibility in the mining sector, the Indonesian government has implemented strict regulations regarding reclamation and post-mining guarantees, clearly outlined in Article 100 of Law No. 3 of 2020 on Mineral and Coal Mining. According to this provision, every holder of Mining Business License (Izin Usaha Pertambangan or IUP) and Special Mining Business License (Izin Usaha Pertambangan Khusus or IUPK) is required to provide and allocate reclamation guarantees and/or post-mining guarantees.
The Ministry of Energy and Mineral Resources (MEMR), which is responsible for overseeing the mining sector in Indonesia, emphasizes the critical importance of these guarantees. Every mining company engaged in exploration and exploitation activities is mandated to deposit the guarantee fund before commencing operations. This fund is essential to ensure that companies are committed to restoring the environment post-mining in accordance with established rules, ultimately aiming to mitigate the negative impacts of mining activities on the ecosystem.
Variation in the Amount of Reclamation Guarantee
The Coordinator for Mineral and Coal Environmental Protection at the Directorate General of Mineral and Coal of the MEMR explained that the amount of reclamation guarantee that must be provided by mining companies varies depending on the geographical conditions and characteristics of the mined land in each region. The average amount of guarantee that must be deposited by mining companies in Indonesia reaches IDR 200 million per hectare. However, in certain areas, such as Papua, reclamation costs may be higher due to the complexity of the natural conditions.
These cost differences are reasonable given that each region presents different environmental challenges, requiring adjustments based on the specific reclamation needs at each location. Thus, the reclamation guarantee funds can be effectively used to restore previously mined land, whether in the form of soil restoration, replanting vegetation, or rehabilitating local ecosystems.
Sanctions for Violators
Not only does this regulation impose the obligation to deposit funds, but it also strengthens the enforcement of law against violations committed by mining companies. Based on Article 161B of Law No. 3 of 2020, companies whose IUP or IUPK has been revoked or expired and who fail to place reclamation guarantees and/or post-mining guarantees will face criminal penalties. Such sanctions include imprisonment for a maximum of 5 (five) years and fines of up to IDR 100 billion.
The imposition of these sanctions underscores the government’s seriousness in protecting the environment and ensuring that land reclamation is carried out by the companies that conduct exploitation. These severe penalties are expected to serve as a deterrent and encourage companies to comply with the regulations in place. With the implementation of these regulations, the government hopes that the mining sector in Indonesia can operate more responsibly, maintaining a balance between the exploitation of natural resources and environmental preservation. The fulfilment of reclamation guarantee obligations becomes one of the crucial steps toward realizing this goal, while ensuring environmental sustainability for future generations.
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Author:
Dewi Susanti